In the latest market close, Abercrombie & Fitch (ANF) reached $151.53, with a -1.64% movement compared to the previous day. This change lagged the S&P 500’s 0.51% loss on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.93%.
The teen clothing retailer’s stock has dropped by 11.17% in the past month, falling short of the Retail-Wholesale sector’s loss of 2.37% and the S&P 500’s loss of 0.26%.
The upcoming earnings release of Abercrombie & Fitch will be of great interest to investors. It is anticipated that the company will report an EPS of $2.08, marking an 89.09% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 15.05% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.25 per share and revenue of $4.73 billion, which would represent changes of +47.29% and +10.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Abercrombie & Fitch is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Abercrombie & Fitch is presently trading at a Forward P/E ratio of 16.65. This denotes a premium relative to the industry's average Forward P/E of 14.48.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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